COST estimates for running the CSIRO facility at Merbein in northwest Victoria have dashed hopes of an alliance of horticulture groups using it as a research centre.

A report commissioned by four fruit and nut groups, La Trobe University and CSIRO said an increase in research and activity was needed at the facility, but it was "unlikely to become financially viable in the current research environment".

Station management and maintenance costs were estimated at $602,250 a year and variable costs at $3.78 million.

"In order for the Merbein facility to break even, about $4.31 million of R&D would need to be undertaken at the facility per year," the report said.

Murray Valley Citrus Board chief executive Hugh Flett said the costs put the site out of reach of the alliance which was formed after last year's announcement by CSIRO that it would close Merbein by 2011.